Fed's Daly: tariffs' effect on inflation may be more muted than thought

July 17 (Reuters) - San Francisco Federal Reserve Bank President Mary Daly on Thursday said the effect of the Trump administration tariffs on inflation may be more muted than had been expected, with companies figuring out ways to avoid tariffs or passing all of the costs on to their customers, and increased levies on imports are not so far spilling more broadly into overall inflation.

"We haven't seen any evidence that that's occurring," Daly said at the Rocky Mountain Economic Summit in Victor, Idaho. She reiterated that two interest-rate cuts this year is a "reasonable" outlook.